Nev., called up the bipartisan bill for immediate passage, and no senator objected. The measure now goes to the House.

On May 20, 2025, the U.S. Senate passed the “No Tax on Tips Act” with unanimous consent. The bill now heads to the U.S. House of Representatives.

If approved by the House, the new legislation will create a tax deduction of up to $25,000 for cash tips workers report to their employers for withholding purposes.

The no-tax-on-tips provision is getting closer to becoming a reality for the nation's tipped workers. Why it matters: The Senate passed the bill to eliminate federal income tax on tips Tuesday — a campaign promise by President Trump.

The No Tax on Tips legislation, which offers an economic break to eligible employees making up to $160,000 a year, is now headed for a House vote.

Democratic senators let one of their colleagues pass a "No Tax On Tips" bill via voice vote. But several told BI they still have questions about it.

WASHINGTON -- President Donald Trump’s campaign promise to end taxes on tips is coming closer to becoming law. On Tuesday, the Senate voted unanimously to pass the No Tax on Tips Act, which was introduced earlier this year by Sen. Ted Cruz (R-Texas).

During last year’s presidential campaign, both Donald Trump and Kamala Harris suggested that the money Americans make from tips shouldn’t be taxed. This week, the Senate unanimously passed the No Tax on Tips Act. Seemingly overnight, there’s a broad bipartisan consensus that tips shouldn’t be taxed by the federal government.